Missed the ITR due date? You can now select only this tax regime; here’s why

If you have missed your Income Tax Return (ITR) filing deadline, you still have a chance to file your ITR with a penalty and interest. But, do you know that you don’t have a choice to select a tax regime between the two? Yes, the taxpayers can only select the new tax regime to file their tax return once they cross the last date, as per the Income Tax Department rules.

The choice to select between tax regimes was available only when the return was filed on time.

Why only a new tax regime

The government has made the new tax regime the default option now. The new tax regime has lower tax rates but also has fewer exemptions and deductions. Taxpayers can choose the old regime only if they file their return before the due date.

The regulations are more stringent for taxpayers who earn money from their businesses or professions. To continue under the previous regime, Form 10-IEA must be filed by the deadline. You automatically switch to the new regime for that year if you skip this step.

Through this, the I-T Department aims to reduce the misuse of extended timelines. 

What happens if you file a belated ITR?

If you file your ITR after the deadline, you need to pay a penalty of up to Rs 5,000 and may face some other consequences. 

Under Section 234A, one per cent interest per month or part of the month will be payable along with the tax due if there is tax payable. 

A penalty of Rs 5,000 under Section 271F might also be payable, depending upon the case. However, if a taxpayer has paid the taxes and only a return is pending, then no interest will be charged.

Read More- ITR Filing 2025: What happens if you miss filing your income tax return before the deadline?

3 possible ways to file your ITR after the due date

1- Belated return
The first option is that you can still file your belated return under section 139(1). This option comes with some penalty and interest you may have to pay, depending on your annual income. 

2. Revised return
A revised return is also possible if a taxpayer has already filed their return and later finds some mistakes or errors. It can be done before December 31, 2025.

3. ITR-U
You can also file an updated return called ITR-U. This is for taxpayers who missed both the belated and revised deadlines or later discovered undeclared income. The time window for this option has been increased to 48 months in the Finance Act 2025.

Also Read: These 3 options are still open if you have missed income tax return filing deadline; check inside